Everyone has heard the advice to live below your means, especially when you’re struggling to make ends meet. But does that same rule apply when ? As it turns out, even millionaires like to stay frugal, too. GOBankingRates spoke with self-made millionaires Tommy Mello, CEO and founder of and George Yang, founder and chief product designer at , to discuss the ways they live below their means.
“As a self-made millionaire, I’ve always believed that living below your means is key to long-term financial success,” Mello said. Below, both we explore he and Yang’s reasons for . Earning passive income doesn't need to be difficult.
“One of the first steps I took was to clearly distinguish between needs and wants,” Mello said. “I make sure that my spending is focused on what’s essential, whether it’s for my business or personal life.” He said this means not getting caught up in luxury or impulse purchases that don’t align with his goals.
“I avoid unnecessary expenses that can quickly add up by focusing on needs.” “I’ve automated my savings so that a significant portion of my income is set aside before I even see it,” Mello said. This helps him live on a predetermined budget and ensures that he’s consistently investing in his future.
“It’s easy to fall into the trap of spending what’s in your account,” he said, “but by automating my savings, I remove the temptation and build wealth passively.” Rather than spending money on depreciating asset.